Exercise 1 (LO 3, 4) Measurement of the translation adjustment and hedging an investment. Brico Enterprises, a U.S. corporation, acquired an 80% interest in Bandar Dis- tributors in June 2012 when 1 FC equaled $1.62. Bandar is a foreign corporation whose func- tional currency is the FC. The condensed preclosing comparative trial balance for Bandar for the current year ended December 31, 2015, is as follows: Debit (Credit) December 31, 2015 165,000 FC December 31, 2014 Current Assets. Long-Lived Assets (net) Other Assets Cost of Sales Other Expenses Current Liabilities. Other Liabilities 185,000 FC 420,000 400,000 170,000 165,000 525,000 425,000 205,000 260,000 (175,000) (135,000) (125,000) (225,000) Net Sales.. (820,000 (865,000) Dividends Declared. 25,000 30,000 Common Stock (100,000 (100,000) Retained Earnings (beginning) (290,000) (140,000) Total... 0 0 Dividends are declared on March 1 of each year and are paid on March 31 of that translated balance in retained earnings at the beginning of 2014 was $227,300. year. The 1. Determine the balance in the cumulative translation adjustment account as of December 31, 2015. 2. Determine how much of the cumulative translation adjustment balance as of December 31, 2015, is traceable to the years prior to 2015. 3. Given your answer to part (2), verify your answer by using an alternative approach to calculating the amount of the cumulative translation adjustment that is traceable to years prior to 2015. 4. Assume that Brico borrowed 100,000 FC on March 1, 2015, as a hedge against its invest- ment in the subsidiary. Determine how much of the parent's interest in the current-year